Ethereum Market Analysis: Drop in Transactions, Potential for Price Revival
Ethereum’s Weekend Slump – An Analysis
In recent days, there has been a dramatic decline in major ETH transactions. Ethereum [ETH] continued its retreat over the weekend, falling to as low as $2,407, according to CoinMarketCap. The largest altcoin fell by 2.64% in the last 24 hours, with weekly losses of more than 4%.
What’s Next for Ethereum?
Technical analyst Ali Martinez has analyzed recent developments and noted that ETH is in a critical zone. A bounce from the support at $2,388 could potentially drive ETH upwards. However, he also warned market traders and noted that we could see a pullback to the next significant support zone around $2,000 if ETH fails to hold this level.
However, the market sentiment was not exactly bullish. According to the analysis of CryptoQuant data by AMBCrypto, the ratio of ETH’s buying volume to selling volume of the takers in the last 10 days was below 1. This means that more sellers were willing to sell at a lower price, which in turn signals that the selling pressure was stronger than the buying pressure at the time of writing.
Whale Investors Hold Back
Another notable aspect that caught attention was the activity of whale investors. Using Santiment’s data, AMBCrypto noted a dramatic decline in large ETH transactions in the last 10 days. Note how the surge in transactions from January 7th to 10th caused a rise in ETH price, suggesting that the whales were accumulating. However, the rise was halted as the whales pulled back. Since then, ETH has been range-bound.
Also, the ETH reserves on the exchanges have decreased in the past week. This is a sign that the whales are in a mood to HODL.
Derivative Traders Are Bearish on ETH, But…
A look at ETH’s derivative market shows that bearish leveraged traders were dominant at the time of pressure. According to Coinglass, the longs/shorts ratio of ETH has been below 1 since January 12, suggesting that positions betting on price declines were more than those betting on price increases.
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Interestingly, the market sentiment according to the investigation of Hyblock data by AMBCrypto has shifted from neutral to greedy. This could pave the way for an increase in ETH buying in the coming days and thus revive its price.
Conclusion
Recent movements and trends in Ethereum show a mixed sentiment among investors. While some are bearish and selling, there are signs that others are getting greedy and could buy. It remains to be seen how these dynamics will develop in the coming days and what impact they will have on the price of Ethereum.
Sources: CoinMarketCap, CryptoQuant, Santiment, Coinglass, Hyblock Capital
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
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| Price | $3,578.73 |
| 24h % | -2.10 % |
| 7d % | 8.54 % |
| 30d % | 46.35 % |
| 60d % | 48.08 % |
| 1y % | 65.57 % |
| Market Cap | $430,646,422,398.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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